Policy Matters Ohio released a report Monday that gives a hint of how federal sequestration, a series of across-the-board federal budget cuts that kicked in March 1, will affect Ohio. The impact of sequestration is already being felt in various areas, including education, housing and the environment.
In Cincinnati, the Cincinnati-Hamilton County Community Action Agency plans to carry out $1 million in cuts by dropping 200 kids from the Head Start program, which helps low-income families get their children into preschool and other early education programs.
Cuts will be spread out all around the state, leading to cuts in tax incentives for renewable energy and energy efficiency, reduced research programs at major universities and the elimination of military jet flyovers at certain events.
Wendy Patton, a senior project director at Policy Matters, says the cuts are only the beginning.
“We’re just seeing the tip of the iceberg now,” Patton says, citing cuts in Chillicothe that will force the Chillicothe Metropolitan Housing Authority to serve 47 less families through the housing voucher program. “We will see this kind of information come out across Ohio’s 88 counties as the months roll by.”
In February, the White House outlined how sequestration cuts will affect Ohio in its efforts to convince Congress to stop the cuts. The White House estimated about 26,000 civilian defense department employees would have to be furloughed, nearly $6.9 million in funding to clean air and water would have to be cut and 350 teacher and aide jobs would be put at risk, among other cuts.
Even the unemployed will be hurt through cuts to unemployment insurance benefits — bad news in an already weak economy. In Ohio, about $5.3 million in federal grant money going toward unemployment insurance will be cut in a way that particularly affects the long-term unemployed, according to Pew Charitable Trusts.
“We already have a problem with the long-term unemployed,” says Zach Schiller, research director at Policy Matters. “This just makes it worse for these folks.”
An analysis from The Washington Post found employers often discriminate against anyone who has been unemployed for a considerable time during the hiring process.
The U.S. Bureau of Labor Statistics today released a disappointing job report. Unemployment fell to 8.1 percent in August, and 96,000 jobs were added nationwide. But economists were expecting about 150,000 jobs, and the unemployment rate fell largely due to people giving up on the job hunt, which means they are no longer counted in the labor pool.
One of the reasons for disappointment is the drop in public jobs. People are quick to look at the private sector when these kind of numbers come up, but the public sector employs people, too. And the public sector lost 10,000 jobs at state and local levels, according to today’s jobs report.
That follows the trend of the past few years. The public sector has been doing poorly since the Great Recession started, according to this chart from the Center on Budget and Policy Priorities:
The chart shows state and local payrolls since the beginning of the recession. It proves quite clearly that governments have been making cuts to public jobs.
Ohio has not avoided government job cuts. The Ohio Department of Job and Family Services reported July’s unemployment rate at 7.2 percent, which was unchanged from June’s unemployment rate. The biggest loss in jobs for the month came from government, which lost 5,300 jobs statewide. In comparison to July 2011, July 2012 had 4,400 fewer government jobs.
Instinctively, it makes some sense. As the recession kicks in and families and businesses are forced to budget for lower expectations, it might seem natural to expect the government to do the same.
However, many economists argue it should be the opposite. They say the government should be used to balance out the private sector. In other words, when the private sector is performing poorly — recession — the government should step in to make up for the drop. When the private sector is performing well — boom — the government can relax and run budget surpluses.
Paul Krugman, a Nobel-winning economist, has advocated for this approach time and time again. In his New York Times column and blog, Krugman has pushed for more stimulus efforts from the federal government, and he called for a much larger stimulus package than the $787 billion package President Barack Obama signed into law in 2009.
The data seems to support economists calling for more action. Last month, the Brookings Institute conducted a study that found June’s national unemployment rate would be at 7.1 percent if governments hadn’t made cuts.
What this means is if governments truly want to fix the economic crisis, they might want to kick the debt can down the road. But considering many cities and states have constitutional amendments requiring balanced budgets, that might be hard to pull off.
City Council may vote today on the controversial plan to lease the city’s parking assets to fund economic development and temporarily balance the deficit. On Friday, Councilman Chris Seelbach put forward Plan S, which would redirect $7.5 million in casino revenues, cut $5 million based on the results of the city's priority-driven budgeting and allow voters to choose between a $10-per-month trash fee or increase the city's admissions tax by 2 percent. Previously, City Manager Milton Dohoney unveiled Plan B to the parking plan, which would lay off 344 employees, eliminate Human Services Funding and close pools and recreation centers, among other changes. In response, mayoral candidate John Cranley proposed his own plan, which would use casino revenue, parking meter revenue and cuts to “non-essential programs” to tame the deficit. Plan B, Plan S and Cranley’s plan all fix the structural deficit in the city’s budget, while the parking plan only fixes the deficit for two years. The parking plan was unanimously approved by the Cincinnati Planning Commission Friday, and it appears five council members are ready to give the plan the go-ahead.
Members of Gov. John Kasich’s own party are beginning to show skepticism toward the governor’s budget proposal, which would expand the sales tax to apply to more services, increase the oil and gas severance tax and make more Ohioans eligible for Medicaid — mostly at the cost of the federal government. Republicans are likely to propose alternatives before a mid-April vote. In a Quinnipiac University poll, a majority of Ohioans approved of the Medicaid expansion but not Kasich’s tax plan. CityBeat covered Kasich’s budget plan in detail here.
Police are taking measures to prevent traffic problems at the Horseshoe Casino’s grand opening tonight. Meanwhile, Indiana casinos are preparing for downturns as the Horseshoe Casino promises a major alternative to tri-state gamblers. During the soft opening last week, Ohio’s casino regulator found the Horseshoe Casino would have to fix its security and surveillance before the grand opening. Previous studies found casinos bring job growth at the cost of crime, bankruptcy and even suicide, and a Dayton Daily News report also found the state’s casinos are falling short of job projections.
On Friday, the sequester, a series of across-the-board federal budget cuts, kicked in, and it could mean big funding reductions for Ohio’s schools. The blunt cuts are largely because Republicans refuse to negotiate with President Barack Obama and Democrats — to the point that Republicans don’t even know what the president is proposing.
The American Civil Liberties Union (ACLU) of Ohio is asking the state’s Department of Education to expand its seclusion room rules to apply to charter schools. Previous reports found seclusion rooms, which were originally intended to hold out-of-control kids until they calm down, have been largely used for convenience by educators, leading to stricter policies from the Ohio Department of Education. But the regulations currently apply only to traditional public schools, not charter schools.
Reminder: On top of putting everyone around you in danger, texting while driving will now result in a fine up to $150.
The Cincinnati Zoo has confirmed it has terrible taste in names with its choice for the new four-week-old gorilla: Gladys Stones. Still, the zoo does have that whole environmentally friendly thing going on. Maybe the pros outweigh the cons.
U.S. researchers are claiming they have “functionally cured” an HIV-infected infant after extensive treatments left the virus’s presence in blood at such low levels that it can no longer be detected by standard clinical tests.
Scientists are ostracizing what Popular Science calls the “world’s sexiest octopus.”
If you can watch BigDog, the four-legged robot, toss cinder blocks with ease and not fear the robot apocalypse, you’re not prepared.
Happy new year! Yes, planet Earth made it through another year. Welcome to an “extra saucy” Morning News and Stuff.
U.S. Congress managed to narrowly avert the “fiscal cliff,” a series of tax hikes and spending cuts set to kick in at the beginning of 2013. If the fiscal cliff had not been prevented, economists and the Congressional Budget Office warned the United States would have plunged back into recession. The final deal keeps tax hikes for those making more than $450,000 a year, and most Americans will see their taxes increase as the payroll tax break passed with President Barack Obama’s stimulus package expires. It’s important to remember that the passing of a deal is not some show of bipartisan heroism; instead, it’s Congress barely preventing an entirely self-inflicted problem.But the deal did not come smoothly. Not only did Congress wait until the very last moment, but U.S. Speaker John Boehner used a naughty word. At a White House meeting, the Ohio politician shot at unfavorable comments from Democratic U.S. Sen. Harry Reid’s by telling Reid, “Go f— yourself.” In fact, Boehner actually used the naughty word twice! Reid replied, “What are you talking about?” Boehner once again said, “Go f— yourself.” Who knew U.S. Congress would turn out to be so much like high school?
When Corrections Corporation of America’s (CCA) Lake Erie prison received an unfavorable audit, the Ohio Department of Rehabilitation and Correction reacted by cutting payments to CCA by $573,000. CityBeat covered the audit and its troubling findings here. CityBeat also covered private prisons in-depth here.
On the bright side, Ohio’s minimum wage went up, like it’s required to do so every year. Policy Matters Ohio says the increase will bring in $340 per year for 215,000 low-wage workers around the state.
Cincinnati-based Kroger is looking mighty tempting this year. Stock-wise, anyway. I don’t think many people like grocery shopping.
A court ruled Ohio overcharged 270,000 businesses for workers’ compensation premiums and must repay them. The ruling could cost the state millions of dollars.
In case anyone was worried, the national standards Ohio adopted for schools do not ban The Catcher in the Rye. Book cliff averted.
Allstate is hiring in Ohio. I’m not sure why this is news, but it’s on multiple newspapers today, so there it is.
Intel could be looking to revolutionize the cable industry by allowing people to subscribe to individual TV channels.
That’s not a medieval weapon; it’s a space rover! The new rovers planned by top universities and NASA could visit Mars’ moon Phobos or an asteroid. It’s, like, whatever.
Despite Gov. John Kasich’s claims to the contrary, the only miracle in Ohio’s economy might be how bad the state is doing compared to the rest of the nation.
The proof: Ohio’s economy was among just two states in the
nation that actually worsened during September through November compared to August through October, according
to the research department at the Federal Reserve Bank of Philadelphia.
Beyond Ohio’s borders, Alaska also worsened, two states remained stable and the rest of the nation moved in a generally positive direction.
In other words, while 46 states’ economies moved in a generally positive direction, Ohio actually got worse.
The measures come from the State Coincident Index issued by the Federal Reserve Bank of Philadelphia every month. The index combines several economic indicators to gauge the condition of each state’s economy. The research department then gauges whether the index improved or worsened after the latest month’s data is taken into account.
With the gubernatorial election now less than one year away, the sorry state of Ohio’s economy could prove a bad sign for Gov. Kasich’s re-election.
Kasich, a Republican, came into office as Ohio’s economy began dashing out of the Great Recession stronger than most of the nation — a trend Kasich took to calling the “Ohio miracle.”
Ed FitzGerald, Kasich’s likely Democratic challenger, has criticized the claim in the past few months as Ohio’s economy showed more signs of worsening despite Kasich’s promises that his policies would keep the state in the right direction.
One of those policies was privatizing Ohio’s development agency and effectively turning it into JobsOhio. In less than three years, the agency has been riddled in multiple scandals following accusations from Democrats that the JobsOhio board hosts various conflicts of interests and lacks transparency when recommending who should get state tax credits.
Kasich also pushed and approved an across-the-board income tax cut earlier in 2013 through the two-year state budget. But because the income tax cut came with a sales tax hike, left-leaning think tank Policy Matters Ohio found Kasich’s tax cut heavily favors the wealthy, which calls into question whether the tax cut will actually help Ohio’s middle class or economy.
For FitzGerald and other Democrats, the challenge is advocating a progressive agenda that stands in contrast to Kasich’s policies. Although they have plenty of criticisms, it remains unclear what Democrats could do if — as looks almost certain — Republicans continue to hold Ohio’s legislative chambers.
Then there’s the question of whether state policies matter much, if at all. Economists generally agree that state officials tend to dramatize the economic impact of their policies when much bigger factors are at play, particularly as globalization reshapes the national and global economies.
For now, one thing is clear: Kasich’s policies haven’t been enough to turn around Ohio’s sinking economy throughout the past three months.
For the first time since inauguration, Ohio Gov. John Kasich has a positive approval rating, but a plurality of registered voters say Kasich doesn’t deserve a second term. The Quinnipac University poll attributed the increase in Kasich’s approval rating to “high levels of satisfaction among Ohio voters with life in the Buckeye State.” About 42 percent of respondents approved of Kasich, while 35 percent disapproved. About 42 percent said Kasich doesn’t deserve a second term, while 36 percent said he does. The poll surveyed 1,165 registered voters with a margin of error of 2.9 percent.
Last night, Cincinnati held its final public hearing on City Manager Milton Dohoney’s proposed budget. About 40 people spoke during the meeting, with many voicing concern about Media Bridges funding, which CityBeat recently covered here. The budget has also come under scrutiny due to its privatization of parking services, but Dohoney says the choice is privatization or 344 layoffs.
Cincinnati plans to bolster its green building incentives. City officials are trying to amend the city’s Leadership in Energy and Environmental Design (LEED) standards to encourage higher levels of investment in green projects. Since LEED standards were first approved in 2009, they have been criticized for only offering strong incentives for lower levels of certification. The amendment seeks to make the higher levels of certification more appealing.
University Hospital is being renamed to the University of Cincinnati Medical Center.
An “anti-immigrant bill” proposed by Cincinnati’s Ohio Sen. Bill Seitz is not being received well by Innovation Ohio. S.B. 323 seeks to limit workers’ compensation to illegal immigrants, but the Ohio policy research group is not sure that’s a legitimate problem. The organization is also worried the bill will impose a regulatory burden on the Ohio Bureau of Workers’ Compensation and Ohio’s workers without providing extra funds and training to carry out the regulations.
Ohio is improving in its battle against human trafficking. The state earned a “C” and it was labeled “most improved” in a new report from the Polaris Project. But one state legislator wants to go further by placing tougher standards on “johns” participating in the sex trade. CityBeat previously wrote about the human trafficking problem in Ohio here.
The Ohio Tax Credit Authority approved enough credits to help create about 500 jobs in Greater Cincinnati.
Michigan may have recently passed its anti-union “right-to-work” law, but Gov. Kasich does not share a similar interest.
Kasich will announce his changes to the Ohio Turnpike Thursday and Friday. The governor says his proposed changes will unlock “greater wealth,” but critics are worried Kasich is about to sell off a major public asset.
Ohio Secretary of State Jon Husted is still defending his decisions during the lead-up the election. Husted has now become infamous nationwide due to his pre-election record, which CityBeat wrote about here.Even Jesus would be jealous. Science can now turn human urine into brain cells.
The George W. Bush Presidential Library denied a request by a Democratic super PAC for documents related to Sen. Rob Portman’s work in the George W. Bush administration. The library says it is not subject to the Freedom of Information Act and that all are welcome to see the documents in 2014. The super PAC, American Bridge 21st Century, has been researching GOP candidates as Mitt Romney moves closer to choosing a running mate.
“When you look at the roster of V.P. candidates, each of them is significantly flawed,” American Bridge senior adviser Ty Matsdorf said in a statement. “For Portman, it is his calamitous record on fiscal issues while working at the Bush White House. It shouldn’t be a shock that he is going to want to keep that under wraps for as long as possible, but unfortunately it’s pretty hard to hide a record as terrible as that.”
CNN is live blogging from the Supreme Court to see if there are any rulings on the health care law or immigration.
Gay pride celebrations took place in New York, Chicago and San Francisco over the weekend, and Obama organizers were there to recruit volunteers.
Spain formally asked for European aid for its banks.
The sea level is rising faster along the Atlantic Coast than other places in the world.
Facebook has created a new “find friends nearby” function that will allow users to see friends and people they don’t know who are at events or social gatherings. From some Facebook engineer’s comments on the story:
I built Find Friends Nearby with another engineer for a hackathon project. While it was originally called ‘Friendshake’, we settled on ‘Find Friends Nearby’ for launch (the URL was a little bit of a homage to the previous iteration).
For me, the ideal use case for this product is the one where when you’re out with a group of people whom you’ve recently met and want to stay in contact with. Facebook search might be effective, or sharing your vanity addresses or business cards, but this tool provides a really easy way to exchange contact information with multiple people with minimal friction.
President Barack Obama announced a new trade action against China during a Cincinnati campaign stop on Monday, where he also took the opportunity to attack Republican challenger Mitt Romney.
The U.S. filed the case at the World Trade Organization on Monday and claims that China offers “extensive subsidies” to native automakers and auto-parts producers.
The Chinese government filed its own complaint before the WTO on Monday, challenging tariffs the U.S. imposes on Chinese products ranging from steel to tires. The tariffs are meant to protect American manufacturers against what the U.S. government claims are unfair trade practices by China.
“(The U.S. action is) against illegal subsidies that encourage companies to ship auto part manufacturing jobs overseas,” Obama said before an estimated crowd of 4,500 at the Seasongood Pavilion in Eden Park. “These are subsidies that directly harm working men and women on the assembly lines in Ohio and Michigan and across the Midwest.”
“It’s not right, it’s against the rules, and we will not let it stand. American workers build better products than anyone. ‘Made in America’ means something. And when the playing field is level, America will always win.”
Obama went on to criticize his Republican challenger, saying Romney made his fortune in part by uprooting American jobs and shipping them to China. Obama accused Romney — who has criticized Obama’s foreign policy, saying the president apologizes for American interests — of talking the talk without being able to walk the walk.
The Romney campaign countered with an email after the rally, saying that Obama’s economic policies were hurting the private sector and harmed manufacturing.
“The President’s misguided, ineffective policies have hampered the private sector and allowed China to flaunt the rules while middle-class families suffer,” Romney campaign spokeswoman Amanda Henneberg wrote.
“As president, Mitt Romney will deliver a fresh start for manufacturers by promoting trade that works for America and fiscal policies that encourage investment, hiring and growth.”
The email pointed to reports from Bloomberg finding that manufacturing and production have shrunk recently.
Before the Obama rally several Ohio Republicans held a news conference behind a Romney campaign bus near Eden Park, where they focused more on the deficit than foreign trade.
U.S. Rep. Steve Chabot said it was “laughable” that Obama considers himself a budget hawk. He pointed to the decline in budget negotiations between the president and the Republican-controlled House of Representatives, saying Obama “walked away” from talks with Speaker John Boehner.
“Basically as president from that time last August until now, it’s been all politics,” Chabot said.
Chabot also attacked Obama on foreign policy, claiming the president has left Israel hanging in the Middle East and is not serious with Iran, who he says is on the brink of getting nuclear weapons.
The president in his speech said he did have a plan to reduce the federal deficit, and would reduce it by $4 trillion over the next 10 years without raising taxes on the middle class.
Monday’s visit to Cincinnati was Obama’s second of this campaign and his 12th trip to Ohio this year. Romney has visited the state 18 times during his campaign.
Obama was scheduled to fly to Columbus Monday afternoon for a campaign appearance there.
Ohio’s fracking boom might not be living up to the hype. The Ohio Department of Natural Resources originally estimated that 250 fracking wells would be built by the end of the year, but only 165 have been completed and 22 are currently being built. The disappointing results are being blamed on low natural gas prices and a backlog in work needed to connect wells to customers. Maybe the state’s claim had as much basis as Ohio Gov. John Kasich’s claim that the state’s fracking boom would be worth $1 trillion.
By killing the heartbeat bill and a bill that defunds Planned Parenthood, Ohio Senate President Tom Niehaus, a Republican, apparently declared a war on babies, according to anti-abortion groups. Niehaus is term-limited, so he will not be in the Ohio Senate in the next session, which begins next year. Incoming senate president Keith Faber already said the heartbeat bill could come up to vote in the next Senate session. CityBeat previously wrote about Ohio Republicans’ renewed anti-abortion agenda.
Between 2011 and 2012, Cincinnati had the 12th best economic performance in the United States, according to a Brookings Institute study. Out of the 76 metropolitan areas looked at, only Dallas; Knoxville, Tenn.; and Pittsburgh have recovered from the recession, and 20 areas lost more ground throughout the year.Media Bridges, Cincinnati’s public access media outlet, is the latest victim of the 2013 budget proposal from City Manager Milton Dohoney Jr. The budget plan suggests slashing $300,000 from the organization’s funding. When coupled with state funding cuts, Media Bridges is losing $498,000 in funding, or 85 percent of its budget. Tom Bishop, executive director of Media Bridges, compared the cuts to a “meteor” hitting Media Bridges’ budget. The city says cuts were suggested in part due to public feedback.
The Greater Cincinnati Homeless Coalition is pushing the public to speak out against $610,770 in cuts to human services funding in Dohoney’s proposed budget. Mayor Mark Mallory and City Council have already agreed to continue 2013 funding at 2012 levels, but homeless advocates want to make sure the funding, which largely helps the homeless and low-income families, remains. The group is calling for supporters to attend City Council meetings on Dec. 5 at 1:15 p.m. at City Hall, Dec. 6 at 5:30 p.m. at City Hall and Dec. 10 at 5:30 p.m. at the Corryville Recreation Center.
It’s commonly said Cincinnati is Republican territory, but after the latest elections, that’s looking more and more false.
The University of Cincinnati is stepping up safety efforts around campus. The university held a summit to gather public feedback on possible improvements in light of recent incidents in and around campus. Beginning in January, UC will increase patrols by 30 percent.
Crime around Columbus’ Hollywood Casino has ticked up. Could Cincinnati face a similar fate when the Horseshoe Casino is up and running? A Washington Post analysis found casinos bring in jobs, but also bankruptcy, crime and even suicide.
Results equal funding. That’s the approach Gov. Kasich is taking to funding higher education, but Inside Higher Ed says the approach is part of “an emerging Republican approach to higher education policy, built largely around cost-cutting.” Kasich’s approach is meant to encourage better results by providing higher funds to schools with higher graduation rates, but schools with funding problems and lower graduation rates could have their problems exacerbated.
Josh Mandel, state treasurer and former Republican candidate for the U.S. Senate, insists his big loss in November does not make him a political has-been. Mandel will be pursuing a second term at the Ohio treasurer’s office in 2014. Mandel lost the Senate race despite getting massive amounts of funding from third parties — Democrats estimate $40 million — to support his campaign.
The auto industry is still chugging along with impressive numbers from November.
Gas prices moved down in Ohio this week.
One geneticist says people are getting dumber, but he doesn’t seem to have much to back his claims up.
Cincinnati and Hamilton County are making a comeback. In August, the city dropped to 7.5 percent unemployment, down from 8.2 percent in July, according to new data released by the Ohio Department of Job and Family Services. The county dropped to 6.8 percent, down from 7.3 percent in July.
Ohio’s seasonally unadjusted rate saw a similarly large drop from 7.4 percent in July to 6.8 percent in August. The U.S. unadjusted rate dropped from 8.6 to 8.2 percent.
From a year-to-year basis, Cincinnati and Hamilton County saw even larger drops in unemployment. On August 2011, unemployment in Cincinnati was at 10 percent, 2.5 points higher than August 2012. Hamilton County was at 8.8 percent, 2 points higher than August 2012.
Greater Cincinnati’s seasonally unadjusted unemployment rate also saw large drops, remaining below the state and nation. The 15-county area dropped from 7.2 percent unemployment in July down to 6.7 percent in August. That is a 1.9-point drop from August 2011, which saw an 8.6 percent unemployment rate.
The federal and state unemployment rates are typically adjusted for seasonal factors, but the local rates are not. The adjusted unemployment rates for August were 7.2 percent for Ohio and 8.1 percent for the United States.
The unemployment rate only considers people who are unemployed and looking for work. People not looking for work are deemed to be outside of the labor force.